Pension regulator PFRDA has mandated 2-Factor Aadhaar Authentication for access to the Central Recordkeeping Agency (CRA) system for conducting National Pension System (NPS) related activities.
CRAs are responsible for centralised recordkeeping, administration, and customer service functions for all NPS subscribers. As on date, there are three licensed CRAs in the country.
Currently, Nodal Offices under Central and State Governments, including their underlying Autonomous bodies, use a password-based login to access the CRA for NPS transactions.
To bolster security features and protect the interests of Subscribers and Stakeholders, it has been decided to introduce additional security features through Aadhaar-based authentication for login to the CRA system, said a PFRDA Circular.
PFRDA Circular
This new regime will be effective from April 1, it added. About 1,600 Government offices across the Centre and States would have to implement the new regime from April 1, sources said.
The additional security layer is being compulsorily implemented for all password-based users logging into the CRA system.
This Aadhaar-based login authentication will be integrated with the current User ID and Password-based login process, enabling 2-Factor Authentication for accessing the CRA system.
The new regime is expected to particularly impact the Government NPS sector as two-factor Aadhaar authentication has so far not been introduced till date for this segment.
Benefits
The two-factor authentication approach is expected to significantly reduce the risk of unauthorised access to the CRA system.
This additional layer would safeguard NPS transactions and protects the interests of both subscribers and stakeholders, PFRDA has said.
This Aadhaar-based login authentication will be integrated with the current User ID and Password-based login process, enabling 2-Factor Authentication for accessing the CRA system.
Pension assets
Pension assets under management (AUM) has been growing at Compounded Annual Growth Rate (CAGR) of over 20 percent in the recent decade. The overall NPS assets including Atal Pension Yojana has already crossed ₹ 11.56 lakh crore as of March 16, clocking a 30 percent year-on-year growth. Of this ₹ 11.56 lakh crore, as much as ₹ 8.95 lakh crore related to Government sector covering 9.2 million employees.
NPS took six years and six months to reach the milestone of ₹ 1 lakh crore AUM after its implementation in the year 2009. It then took 4 years and 11 months to further increase AUM to ₹ 5 lakh crore.
NPS AUM had doubled to ₹ 10 lakh crore as of August 25 last year from ₹ 5 lakh crore in a span of just 2 years and ten months.